The cryptocurrency market is now valued at $2 trillion, making this the first time it is appraised at such a high price, and some experts say this unprecedented rate of growth cannot be credited to Bitcoin alone.
According to the price-tracking website CoinGecko, in a span of just over two months, the cryptocurrency market has doubled its capitalization, resulting in retail and institutional investors piling into the space to have an opportunity to ride the sudden rise.
To no one’s surprise, Bitcoin — being the biggest digital currency to date — accounted for more than 50% of the total capitalization of the market. This year alone, it raised its value over 100%, and it helped to catapult the digital currency market to greater heights. Just last month, Bitcoin’s price was recorded at above $61,000, but it broke past this level on Tuesday when it reached more than $63,000.
Ethereum makes the rally
Bitcoin might account for more than half of the market capitalization of cryptocurrencies, but experts feel that the big push responsible for the surge in market value was provided by Ethereum, the second-largest digital coin.
Just this Tuesday, Ethereum hit the $2,151.25 level, with a growth rate of 180%. This is no surprise as there is a significant level of excitement observed in the use of the said digital currency in Decentralized Finance or DeFi applications – blockchain-based financial services like lending, among many others.
Ranking just second does not make Ethereum just a push-over cryptocurrency. With some of its features, it has gained popularity among many investors. Therefore, it was only a matter of time before it is recognized as one of the driving forces for the whole crypto market capitalization.
Smart contracts are also key features for the digital coin. These contracts can be executed automatically with just a code, making the process appear simple and efficient.
Ethereum commands public interest
Eyes fixated on the progress of Bitcoin might not notice, but Ethereum is slowly but surely gaining popularity, as evidenced by the public interest it now commands.
A perfect support to this rather bold claim is the fact that billionaire investor and current NBA team Dallas Mavericks owner Mark Cuban owns Ethereum. He even went as far as to say that it is the closest thing we have to a true currency.
Chinese application maker Meitu also just recently brought $22.1 million worth of Ethereum last month. It is the first major company ever to make such a move, proving that the digital currency is making the right kind of noise and providing just the right amount of push for the crypto’s market valuation.
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